Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

STRAT COST - CHAPTER 8 > CHAPTER 8 - MULTIPLE CHOICE (CONCEPTUAL) > Flashcards

CHAPTER 8 - MULTIPLE CHOICE (CONCEPTUAL) Flashcards

1
Q

The major source of information for the activity management system is
a. driver analysis.
b. an activity-based costing system.
c. a performance measurement system.
d. product information.

A

b

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Activity-based management attempts to
a. identify and eliminate all unnecessary activities.
b. increase the efficiency of necessary activities.
c. add new activities that increase value.
d. all of these.

A

d

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Processes are
a. tasks that must be completed to do work.
b. outcomes of activities.
c. activities linked to perform a specific objective.
d. the linked set of value-creating activities from disposal of materials to disposal of the finished product by end consumers.

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which of the following is NOT part of the process dimension of the activity-based management model?
a. resources
b. driver analysis
c. activities
d. performance measures

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following is NOT part of the two-dimensional activity-based management model?
a. personnel selection
b. driver analysis
c. resources
d. performance measures

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the two dimensions of an activity-based management model?
a. the cost dimension and the project dimension
b. the cost dimension and the process dimension
c. the quality dimension and the process dimension
d. the quality dimension and the activity dimension

A

b

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which of the following is NOT part of the cost dimension of the activity-based management model?
a. resources
b. driver analysis
c. activities
d. cost objects

A

b

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which of the following is part of the cost and process dimensions of the activity-based management model?
a. resources
b. driver analysis
c. activities
d. cost objects

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the purpose of driver analysis?
a. identify activities in a process
b. identify number of processes
c. identify root causes of activity costs
d. identify complexity of processes

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The results or products of an activity are called:
a. Activity inputs
b. Driver analysis
c. Activity outputs
d. Value-added activities

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The resource(s) consumed by the activity in producing its output is(are) called:
a. Value-added activities
b. Activity outputs
c. Driver analysis
d. Activity inputs

A

d

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The process of identifying, describing, and evaluating the activities an organization performs is called:
a. Activity inputs
b. Driver analysis
c. Activity analysis
d. Value-added activities

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The effort expended to identify those factors that are the root causes of activity costs is(are) called:
a. Driver analysis
b. Activity outputs
c. Activity inputs
d. Value-added activities

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

An activity output measure is
a. the number of outputs from a process.
b. the cost of the activity measured.
c. the effort expended to identify root causes.
d. the number of times an activity is performed

A

d

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Which of the following process dimensions of the activity-based management model deals with “why”?
a. resources
b. driver analysis
c. activities
d. performance measures

A

b

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which of the following process dimensions of the activity-based management model deals with “what”?
a. resources
b. driver analysis
c. activities
d. performance measures

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which of the following is NOT an expected outcome of activity analysis?
a. What activities are performed?
b. How many people perform the activities?
c. The time and resources required to perform the activities.
d. All of these are expected outcomes.

A

d

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

An example of activity reduction would be
a. improving cycle time so the need for expediting is eliminated.
b. redesigning products to lead to a reduced cost set of activities.
c. designing a new product that uses components already used by another product.
d. reducing demand for customer complaint handling by improving product quality.

A

d

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The activities necessary to remain in business are called:
a. Value-added activities
b. Activity inputs
c. Activity outputs
d. Activity drivers

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Non-value-added activities
a. are unnecessary inputs.
b. are valued outputs to internal users.
c. are valued outputs to external users.
d. help meet the organization’s needs, not the product needs.

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Which of the following is an example of a value-added activity?
a. supervision of production workers
b. inspection of products
c. scheduling of production
d. All of these are value-added activities.

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which of the following is NOT a necessary condition for classification as a value-added activity?
a. The activity produces no change of state.
b. The change of state was not achievable by preceding activities.
c. Activity enables other activities to be performed.
d. All of these are necessary conditions.

A

a

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which of the following is a reason for managerial activity to be considered a value-added activity?
a. It is an enabling resource for operational activities that bring about a change of state.
b. Managing activities brings order by changing the state from uncoordinated activities to coordinated activities.
c. Both are reasons for classifying managerial activities as value-added activity.
d. Neither is a reason for classifying managerial activities as value-added activity.

A

c

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Which of the following is an example of a non-value-added manufacturing activity?
a. assembly
b. scheduling
c. finishing
d. All of these are value-added activities.

A

b

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following is a value-added activity?
a. moving
b. inspection
c. processing
d. waiting

A

c

26
Q

Which of the following process dimensions of the activity-based management model deals with “how well”?
a. resources
b. driver analysis
c. activities
d. performance measures

A

d

27
Q

The effort to reduce costs of existing products and processes is named:
a. Activity reduction
b. Activity elimination
c. Activity selection
d. Kaizen costing

A

d

28
Q

The process which involves choosing among various sets of activities that are caused by competing strategies.
a. Activity sharing
b. Activity selection
c. Activity elimination
d. Activity reduction

A

b

29
Q

The process that focuses on non-value-added activities is called:
a. Activity sharing
b. Activity reduction
c. Activity selection
d. Activity elimination

A

d

30
Q

The process that decreases the time and resources required by different activities is called:
a. Activity sharing
b. Activity elimination
c. Activity reduction
d. Activity selection

A

c

31
Q

The process which increases the efficiency of necessary activities by using economies of scale is called:
a. Activity elimination
b. Activity sharing
c. Activity selection
d. Activity reduction

A

b

32
Q

Which of the following focuses on the relationship of activity outputs to activity inputs?
a. activity reduction
b. quality
c. time
d. efficiency

A

d

33
Q

Which of the following is a financial measure of activity efficiency?
a. activity flexible budgeting
b. trends in activity costs
c. benchmarking
d. all of these

A

d

34
Q

For non-value-added activities that are unnecessary, the standard quantity is
a. one.
b. zero.
c. actual quantity minus standard price.
d. actual quantity plus standard price.

A

b

35
Q

Value-added costs are standard costs based on
a. currently attainable standards.
b. ideal usage standards.
c. cycle time.
d. the value added.

A

b

36
Q

Value-added costs equal standard quantity times
a. non-value-added costs.
b. currently attainable standards.
c. standard price.
d. actual price.

A

c

37
Q

The maintenance subcycle is defined by what sequence?
a. establish-do-check-act
b. establish-act-do-check
c. do-act-establish-check
d. check-do-plan-act

A

a

38
Q

A technique for improving performance of activities and processes that searches for best practices is called
a. value-added reporting.
b. Kaizen costing.
c. trend reporting.
d. benchmarking.

A

d

39
Q

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called
a. variance benchmarking.
b. competitive benchmarking.
c. external benchmarking.
d. internal benchmarking

A

d

40
Q

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called
a. value-added reporting.
b. activity flexible budgeting.
c. Kaizen costing.
d. benchmarking.

A

b

41
Q

The capacity variance is composed of the unused capacity variance and
a. the activity volume variance.
b. the used capacity variance.
c. the activity benchmark.
d. the value-added standard.

A

a

42
Q

The unused capacity variance is
a. the difference in costs between activity availability and activity usage.
b. the difference in costs between actual activity level acquired and the value-added standard quantity of activity that should have been used.
c. the difference in costs between practical capacity of activity and the standard capacity of the activity.
d. none of these.

A

a

43
Q

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called
a. value-added activity reporting.
b. activity flexible budgeting.
c. activity capacity reporting.
d. activity trend reporting.

A

c

44
Q

Under what conditions would the activity capacity used be zero?
a. If the activity is value-added.
b. If the activity is non-value-added.
c. If the activity is discretionary.
d. It would never be set at zero.

A

b

45
Q

Activity-based management can be viewed as an information system with broad objectives. Which of the following is NOT on of the broad objectives of ABM?
a. Support continuous improvement through cost reduction.
b. Increase the non-value-added costs through increased collection of more accurate cost accounting information.
c. Improve decision making through more accurate cost data.
d. All of these are broad objectives of ABM.

A

b

46
Q

Which of the following is NOT an objective of activity-based management?
a. to improve decision making through better cost information
b. to increase the number of activities necessary to perform processes
c. to encourage cost reduction through continuous improvement
d. to increase profitability

A

b

47
Q

Which of the following is NOT a reason for ABM implementation failure?
a. lack of support from higher-level managers
b. expected results do not materialize
c. implementation is performed in a timely fashion
d. resistance to change

A

c

48
Q

Which of the following is NOT an objective of responsibility accounting?
a. to redesign processes to be more effective
b. to align individual and organizational goals
c. to influence behavior
d. to increase profitability

A

a

49
Q

Which of the following is NOT a common step in an ABM implementation model?
a. Systems planning
b. Assess Value Content of Activities
c. Identify, Define, and Classify Activities
d. All of these are common steps.

A

b

50
Q

Which of the following is NOT an essential element of responsibility accounting?
a. assigning responsibility
b. establishing performance measures
c. evaluating performance
d. ridiculing poor performers

A

d

51
Q

The responsibility accounting system developed for operations in a continuous improvement environment would be
a. financial-based responsibility accounting.
b. functional-based responsibility accounting.
c. activity-based responsibility accounting.
d. strategy-based responsibility accounting.

A

c

52
Q

Which of the following is descriptive of activity-based responsibility accounting?
a. It assumes that activities can be collected into independent subgroups.
b. Its focus is the organization.
c. It assigns responsibility to processes.
d. Its standards are engineered and tend to be static.

A

b

53
Q

Which of the following is descriptive of financial-based responsibility accounting?
a. It assumes that activities are linked.
b. It assigns responsibility to organization units.
c. Its control emphasis is costs.
d. Its goal is continuous improvement.

A

b

54
Q

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?
a. Process management requires significant group activity.
b. Performance evaluation employs dynamic standards.
c. Performance evaluation uses only financial measures.
d. Performance evaluation is based on optimal standards.

A

c

55
Q

The process which refers to the performance of a process in a new way to achieve major improvements is called:
a. Process improvement
b. Process creation
c. Process innovation
d. Process efficiency

A

c

56
Q

Process improvement can be defined as
a. The performance of a process to achieve major improvements.
b. The adoption of new processes to meet strategic objectives.
c. The incremental or continual increases in the efficiency of a process.
d. The expression of performance measures in financial terms.

A

c

57
Q

The process which refers to incremental or continual increases in the efficiency of an existing product is called:
a. Process elimination
b. Process innovation
c. Process creation
d. Process improvement

A

d

58
Q

The process which refers to the adoption of new processes to meet strategic objectives is called:
a. Process creation
b. Process innovation
c. Process improvement
d. Process efficiency

A

a

59
Q

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?
a. Rewards are assigned based on budgetary standards.
b. Rewards are assigned based on individual as well as team performance.
c. Rewards are assigned based on progress towards optimal standards.
d. Rewards include bonuses, profit sharing, and gainsharing.

A

a

60
Q

The term(s )which refer(s) to a global incentive that encourages employees to contribute to the overall financial well-being is(are) called
a. Bonuses
b. Demotion
c. Profit sharing
d. Gain sharing

A

c

61
Q

The term(s) which refer(s) to an incentive that specifically relates to sharing the gains from improvements in projects is(are) called
a. Bonuses
b. Gain sharing
c. Profit sharing
d. Stock options

A

b

62
Q

The following is(are) awards made when performance is maintained or exceeds a specific measure:
a. Profit sharing
b. Stock options
c. Bonuses
d. Gain sharing

A

c

STRAT COST - CHAPTER 8 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions